Last Updated:November 25 @ 11:06 am

Malkin: Your Guide to Sleazy Democratic Party-Backed Banks

By Michelle Malkin

Obama campaign adviser David Axelrod and his hatchet people are still yammering about GOP presidential rival Mitt Romney's overseas investments. It's time for the Romney campaign to educate voters about all the shady financial institutions embraced by Democrats right here on American soil.

The fat-cat narrative attacks on Republicans won't go away by making nice with the White House -- or by relying on Beltway journalists to drop their double standards and vet the president's own bad bank entanglements. Indeed, The New York Times admitted this week that their staff and other political journalists from every major media outlet submit their work to the White House for unprecedented review, editing and "veto power."

Fortunately, the truth manipulators and message massagers haven't gotten to this column yet. So, let's talk sleazy Democratic Party-backed banks, shall we?

Fannie Mae/Freddie Mac. Forget Switzerland. The mother and father of all financial industry outrages are rooted in Washington, D.C. And Obama Democrats are among the biggest winners of lavish, out-of-control compensation packages from fraud-plagued Fannie Mae and Freddie Mac. Obama confidante James Johnson raked in $21 million. Former Obama chief of staff and current Chicago Mayor Rahm Emanuel "earned" at least $320,000 for a brief 14-month gig at Freddie Mac. And Clinton Fannie Mae head and Obama economic confidante Franklin Raines bagged some $90 million in pay and stock options earned during the government-sponsored institution's Enron-style accounting scandal on the public dime.

Self-appointed banking policewoman and DNC Chair Debbie Wasserman Schultz has, uncharacteristically, kept her mouth shut about these wealthy barons.

Superior Bank. One of the Obamas' oldest Chicago friends and wealthiest billionaire bundlers, former Obama national finance chairwoman Penny Pritzker, headed up this subprime lender. Even after it went under in 2001 and left 1,400 customers destitute, Pritzker was pushing to expand its toxic subprime loan business. Pritzker and her family escaped accountability by forking over $460 million over 15 years. Obama happily accepted the nearly $800 million in campaign and inaugural funding Pritzker drummed up for him. To protect her family's multibillion dollar fortune, Pritzker's enterprises park their money in the very same kind of offshore trusts her candidate is attacking Romney over.

Broadway Bank. In 2010, President and Mrs. Obama personally raised money for their Chicago friend and fundraiser Alexi Giannoulias. As I reported then, Giannoulias' Greek immigrant family founded Chicago-based Broadway Bank, a now-defunct financial institution that loaned tens of millions of dollars to convicted mafia felons and faced bankruptcy after decades of engaging in risky, high-flying behavior. It's the place where Obama parked his 2004 U.S. Senate campaign funds. And it's the same place where a mutual friend of Obama and Giannoulias -- convicted Obama fundraiser and slumlord Tony Rezko -- used to bounce nearly $500,000 in bad checks written to Las Vegas casinos.

Chicago's former inspector general blasted Giannoulias and his family for tapping $70 million worth of dividends in 2007 and 2008 as the real estate crash loomed. Broadway Bank was sitting on an estimated $250 million in bad loans. The cost to taxpayers after the bank was shut down two years ago: an estimated $390 million.

ShoreBank. The "progressive" Chicago-based community development bank, a "green" financial institution whose mission was to "create economic equity and a healthy environment," folded in August 2010. Obama personally had endorsed the politically connected bank and appeared in a video promoting its Kenyan microlending project. But it was a doomed social justice experiment. After regulators shut it down, Obama crony companies including Bank of American and Goldman Sachs took over the mess courtesy of taxpayer subsidies.

Countrywide/Bank of America. Earlier this month, the House Oversight and Government Reform Committee released a report on corruption-plagued Countrywide Financial Corp., which was bailed out by taxpayer-bailed-out Bank of America. The House investigation confirmed the notorious favor-trading scheme, which involved sweetheart home loan deals for members of Congress and their staff, top government officials and executives of doomed mortgage giant Fannie Mae.

"These relationships helped (Countrywide CEO and Democratic subprime loan king Angelo) Mozilo increase his own company's profits while dumping the risk of bad loans on taxpayers," according to the new report. Mozilo copped a $67.5 million plea to avert a high-stakes public trial in the heat of the 2010 midterm election season. Since then, Obama's Justice Department has taken no action to prosecute Countrywide officials on federal bribery charges.

Among the influence-peddling operation's most prominent beneficiaries: the aforementioned Obama top adviser Jim Johnson, who accepted more than $7 million in below-market-rate Countrywide loans, and former Senate Banking Committee Chairman Chris Dodd, whose ill-fated 2010 re-election bid was personally endorsed by Obama. Obama stood by Dodd even as sordid details of his two discounted Countrywide loans and record Countrywide PAC donations mounted.

Bank of America, which raked in $45 billion in Obama-supported TARP bailout funds and billions more in secret emergency federal loans, footed the $50 million restitution payment bill for Mozilo and another Countrywide official. In 2008, BofA's political action committee gave its biggest contributions to Obama, totaling $421,000. And as I noted in January, Bank of America supplied the Democrats with a $15 million revolving line of credit, along with an additional $17 million loan during the 2010 midterms.

Embarrassed by the party's ties to shady Bank of America, progressives are now trying to rebrand the Bank of America Stadium in Charlotte, N.C., where Obama will give his nomination acceptance address. They're referring to it as "Panthers Stadium" instead.

Obama's copious crooked friends and funders are going to need a lot more whitewash than that to cover up their ill-gotten gains.


Michelle Malkin is the author of "Culture of Corruption: Obama and his Team of Tax Cheats, Crooks & Cronies" (Regnery 2010). Her e-mail address is


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  1. inluminatuoComment by inluminatuo
    July 18, 2012 @ 9:50 am

    Amazing is it not just how clever and creative these Democrat Liberal redistributors of American wealth can become. They are MOST dangerous when put into postitions of power in government and the banking industry who when they collude together only succeed in multiplying our losses that of course always get kicked down the road for our Kids to pay for. This is why the government beast ,,that rules best rules least.

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  2. WarpfieldComment by Warpfield
    July 18, 2012 @ 10:23 am

    “Indeed, The New York Times admitted this week that their staff and other political journalists from every major media outlet submit their work to the White House for unprecedented review, editing and “veto power.”"

    I find this particularly disturbing. Is there some proof of this somewhere?

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    • bigdtootallComment by bigdtootall
      July 18, 2012 @ 10:45 am

      “All the news that’s fit to print.” BHO

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    • BobinmsComment by Bobinms
      July 18, 2012 @ 11:52 am

      I Googled but could not find anything??

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    • prairelivingComment by praireliving
      July 18, 2012 @ 1:04 pm

      I too found this VERY disturbing. I knew that the mainstream media was enamoured with Obama but if they are actually submitting their work to the White House then we have hit the level of the former Soviet Union and Pravda.

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    • middlegroundComment by middleground
      July 18, 2012 @ 3:00 pm

      Do you have a citation for this submission to the White House because I have trouble accepting any admission of guilt from either the NYT or the WP? I concluded long ago that both papers are organs for the DNC. For example, a month before the 2008 election both papers suddenly attacked the Bush Administration’s Mineral Management Service for “enjoying too close a relationship with the industry they were supposed to regulate”. I have to presume that those enjoying this close relationship were professional engineers who were concerned with safety because with the new administration an environmental lawyer from Harvard was appointed to be, as she stated “in charge of safety of Deep Water GoM drilling”. Basically, professional engineers and geologists have the training and experience to recognize and avoid dangerous situations, whereas most lawyers are trained to write regulations and environmentalists with analyzing wildlife populations, all very different areas of expertise that have nothing to do with safety.

      Notice how quickly the failure of the cement holding the blowout protector ceased to be mentioned in the media; how the Jones Act was used to keep BP from acting quickly; how the actual owners and operators of the rig escaped media attention; how the smokescreen of protecting the environment was used to quickly install a drilling moratorium and begin new and cumbersome studies with rules and regulations, and finally how quickly the Obama administration tried to extort 20 billion from the deep pocket of BP. The truly amazing aspect of this spill is that at a depth of 5000 feet, in turbid waters and using remote vehicles the experts were able to close off this well in just 4 months. A blowout by Pemex in the GoM at a depth of 169 feet in 1979 took almost a year.

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  3. daveevad1Comment by daveevad1
    July 18, 2012 @ 10:55 am

    As a resident and native of Charlotte, is it too late to get the Glorious People’s Democratic Socialist Party (a wholly owned subsidiary of the SEIU) to pack up and take their convention, its violent protests and general inconvenience, somewhere like Chicago?

    The GPDSP and Chicago deserve each other…

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  4. vevaComment by veva
    July 18, 2012 @ 12:26 pm

    The dirty Chicago politics just keeps getting dirtier. If Malkin says the New York Times admitted something, you can bet she can give you the evidence. Ask her for it! With all of the above going on, how can ANY NON-Democrat candidate win????

    We can only TRY. A vote FOR Romney is a vote against Obama. Do not think for a moment that not voting for either one means anything! It DOESN’T. It just helps Obama.

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  5. vevaComment by veva
    July 18, 2012 @ 12:30 pm

    Michelle – too many doubt you. Please provide verse and chapter to this info.: “The New York Times admitted this week that their staff and other political journalists from every major media outlet submit their work to the White House for unprecedented review, editing and “veto power.”

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  6. 1rhkmykalaComment by 1rhkmykala
    July 18, 2012 @ 1:37 pm

    you are awesome. Do not let them get away with anything.
    Voting Nov.

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  7. The SentinelComment by The Sentinel
    July 18, 2012 @ 3:11 pm

    Read her book, verse and chapters are cited.

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  8. edmackComment by edmack
    July 18, 2012 @ 3:53 pm

    Here’s the NY Times story:

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  9. edmackComment by edmack
    July 18, 2012 @ 5:24 pm

    Copy/Pasted from the NY Times Story:

    “They are sent by e-mail from the Obama headquarters in Chicago to reporters who have interviewed campaign officials under one major condition: the press office has veto power over what statements can be quoted and attributed by name.

    Most reporters, desperate to pick the brains of the president’s top strategists, grudgingly agree. After the interviews, they review their notes, check their tape recorders and send in the juiciest sound bites for review.

    The verdict from the campaign — an operation that prides itself on staying consistently on script — is often no, Barack Obama does not approve this message.”

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